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The widget manufacturing machine is expected to produce 40,000 widgets per year for the next five years. Widgets can be sold for $4 each and
The widget manufacturing machine is expected to produce 40,000 widgets per year for the next five years. Widgets can be sold for $4 each and the cost of producing each widget is $3. At the end of five years the machine will not be able to produce any more widgets and will be scrapped. Your business intends depreciating the machine at $20,000 p.a. Your business pays tax at a rate of 28% p.a. What is the annual operating cash flow for this machine?
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